Suppose Consumer Confidence Declines and as a Result,consumer Spending Decreases

Multiple Choice

Suppose consumer confidence declines and as a result,consumer spending decreases by $4 billion dollars.Other things equal,if households spend $0.75 of each extra dollar of income and save the remaining $0.25,by how much will spending decrease during the first round through the circular flow?

A) $1 billion
B) $2.25 billion
C) $3 billion
D) $4 billion